Grambling's Overdue Audit
GRAMBLING CLOSING? School could be out for more than just the summer.
(Jul. 29, 2002) Grambling State University is in danger of closing. You read right. According to Reuters, due to serious accounting discrepancies within the university, the school could be closing its doors.
This comes just a year after the historically black college celebrated its 100th birthday.
Founded by an association of black farmers in 1901, the Louisiana college has been unable to provide financial statements deemed acceptable for a state audit since 1997, Reuters reported. Such an audit is usually required for reaccreditation, which happens every 10 years. Grambling is reportedly 2 years overdue.
The Southern Association of Colleges and Schools, an Atlanta -based national accrediting group, has placed Grambling on probation and has set a Sept. 16 deadline for an approved audit for the past two academic years.
Here's the problem. Without accreditation, the school loses all federal funds, including financial aid. In addition, Grambling degrees would lose value, in particular with admissions boards at other institutions or licensing boards.
The accounting problems involve a series of financial problems, including thefts and improper spending. State Legislative Auditor Dan Kyle hopes to tame the task and has doubled the auditing staff to help the school meet the deadline. He described the school's bookkeeping to Reuters as: "like saying for accounts receivable, 'several different people owe me $10,000 combined, but I don't know who they are or how much each one owes.'''
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